Empowering excellence: unveiling the impact of psychological empowerment on high-performance work systems, competitive climate and knowledge-hoarding behavior

Purpose This study adopts an exploitative perspective to examine the “dark side” of high-performance work systems (HPWS), revealing their potential to foster knowledge-hoarding behavior. It further explores the mediating role of competitive climate in the HPWS–hoarding link and the moderating role of psychological empowerment in shaping this relationship. Design/methodology/approach Data were collected from 235 employees in the public and private sectors in Indonesia. Structural equation modeling (SEM) was used to analyze the data. Findings Individual perceptions of HPWS do not directly affect hoarding behavior. However, a competitive climate fully mediates the relationship between HPWS and knowledge-hoarding behavior. Additionally, while psychological empowerment is often associated with positive workplace behaviors in highly competitive climates, it can also lead to knowledge-hoarding behaviors. Practical implications HPWS, as the most important resource for achieving better performance, can be a strategic investment. However, HPWS implementation can also increase work intensification, which eventually leads to an unhealthy and competitive climate. Thus, the negative impact of HPWS can be anticipated by providing psychological support to prevent knowledge-hoarding behavior. In addition, HPWS implementation must also be open to reducing the perception that organizations have “exploitative” relationships with their employees. Originality/value This study contributes to uncovering the “dark side” of the impact of HPWS implementation on knowledge-hoarding behaviors. Using conflicting perspectives, these results show that HPWS can improve the competitive climate, which is a driving factor for negative perceptions of individuals who hoard knowledge. To overcome this, organizations must implement employees’ psychological empowerment.